The Price Action Journal

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Quote from Holt:

Anek,

Nice to be able to study your chart again. How did you know that the dip at 14:13 had no chance against subsequent up move?

Thanks!

Holt

At the time I did not know for sure, obviously, I was just hoping previous R would turn into "new S" and keep the trend healthy considering the 65 area, which had given the market a tremendous amount of trouble in the past, would continue to hold as it was broken so convincingly in the morning.

Good trading.

Anek
 
Hi Anek,

You mentioned that you don't use 3BR's. What method do you use for entries? Do you have a specific entry pattern? Thank you.

Floyd

Quote from Anekdoten:

My take, still long on the vast majority of the contracts, haven't seen a reason to close it yet.

Waiting for 90s test.

I don't use open or close as price is continuous. Dots confirm the 3BR for illustrative purposes, I don't use them much either.

Hope it helps.

Anek
 
Quote from Floyd Roberts:

Hi Anek,

You mentioned that you don't use 3BR's. What method do you use for entries? Do you have a specific entry pattern? Thank you.

Floyd

3BRs are fine, just a tad slow for my taste.

I like to search for "stop runs" in the 1 minute chart, not only for scale ins but for scale outs.

If you got no idea what I'm talking about I invite you to open a 1 minute chart, load a basic volume indicator and watch what volume does at the extremes when a side gets stopped out due to a harsh move.

Give it time and it will come to you.

Anek
 
Quote from Anekdoten:

3BRs are fine, just a tad slow for my taste.

I like to search for "stop runs" in the 1 minute chart, not only for scale ins but for scale outs.

If you got no idea what I'm talking about I invite you to open a 1 minute chart, load a basic volume indicator and watch what volume does at the extremes when a side gets stopped out due to a harsh move.

Give it time and it will come to you.

Anek

Hi Anek,
I'm looking at the 1 min chart... I see that a big move usually occurs with a high volume bar and is followed by a pull back on lower volume... Am I missing anything? BTW, I'm still on page 30 of your AHG thread... I love it, thanks for your effort...

PS. My trades for the day... beginner's luck... 2 trades +14.5
 

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Quote from jfw215:

Hi Anek,
I'm looking at the 1 min chart... I see that a big move usually occurs with a high volume bar and is followed by a pull back on lower volume... Am I missing anything? BTW, I'm still on page 30 of your AHG thread... I love it, thanks for your effort...

PS. My trades for the day... beginner's luck... 2 trades +14.5

Enter on pullbacks, buy low, short high.

As far as volume you on the right track but keep studying the extremes over and over again. When you get proficient at it, move to the 5 second chart and add volume, you will amaze yourself at the fills you can get. I'm getting a bit ahead of myself so follow the suggestions in order.

Takes quite a bit of time.

Anek
 
Quote from Anekdoten:

Enter on pullbacks, buy low, short high.

As far as volume you on the right track but keep studying the extremes over and over again. When you get proficient at it, move to the 5 second chart and add volume, you will amaze yourself at the fills you can get. I'm getting a bit ahead of myself so follow the suggestions in order.

Takes quite a bit of time.

Anek

I will pay attention as you suggested. Thanks Anek. Tomorrow should be a fun day.
 
<i>"Hi Austin
Thank you for the elaborate explanation. I think as a rookie, it may be best to stick with one chart (10k V) as I'll be able to focus on the basics better and won't be distracted by the 2nd chart. Also, like you said, there's no need to catch everything, wanting to catch every trade -> scarcity mentality -> distort reality -> bad trades. JW"</i>

Catch what is clearly signaled on your charts... and never fret over the rest. The ability to average 10pts, 20pts or whatever in a given month while gradually increasing trade size is how careers are built. Trying to raise the bar to infinity on net points captured per day is how careers are ruined.

I do think it's helpful to at least monitor a chart timeframe bigger than what we trade. That shows the forest view... key S/R zones, swing points, open gaps, etc. In my case I have two charts open of any symbol traded. 98% of my time and thought process is focused inside the actual trading chart. But that other 2% of the time uses the convenience of a bigger chart to see daily pivots, prior session ohlc and various S/R levels accordingly.

Having the general roadmap in one chart and then pertinent trade decision points uncluttered in a second chart is how I operate best. I could work strictly from one chart and nix the "roadmap" aspect... but it would mean more work. This profession is tough enough on its own. Whatever it takes to reach the most low-hanging fruit is useful.

fwiw, my preferred trade chart for all eminis is 500-tick to 620-tick settings. That is just about identical to a 10k-Volume chart in every aspect.

to each their own :)
 
For those interested in the Dragon price pattern, look at these 10-point range charts of NQ and ER2. As long as the dragon's back line hold up in upcoming price retracement, these markets are likely to continue to the upside. This pattern was discussed in AHG thread in several occations.

nq_dragon.png

er2_dragon.png
 
Austin,

Thanks for your comment. I have a much better idea on how you use the charts now. My goal now is to be consistent, not try to hit home runs. I'd like to make it to the 5% of the game. You mentioned you like the 500-620 tick charts. I tried it out on TS and they do look very familiar with 10k Vol charts. I'm curious, why is there a range between 500-620? what makes you switch between the tick numbers?

Thanks

JW
 
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